So, they presumably work the same way the iPhone headphones do when plugged into the N1:
Also, it's worth noting (in case you haven't seen iPhone headphone before) that there's just a single button on the cord. Depending on the number of times you press it, you can play/pause (single click) or go to the next track (double click); it acts as the answer/hang up button when the phone rings or you're already on a call, respectively.
Have you looked at the Meizu M9s? They're supposed to have good quality sound, and they make an iPhone-compatible version. That's what I'm considering. They run $20-$30 (check Overstock.com or the manufacturer's website).